Udayan Mukherjee, managing editor, CNBC TV18, says that it has not been a good day for the market and the Nifty is down couple of percentage points after two very significant events.
Event in Greece worked out in the favour of the market in early trade but after RBI's monetary announcement, where the rates were kept unchanged, the Nifty went back to 50:50 levels again and sub-5050. Volumes were high in today's session and banking stocks did not do well. All eyes on how the market will move going ahead of critical Fed meeting on Wednesday.
The economic logic of RBI in acting today was very high since last one week. Today, the RBI has made some significant points for itself in proving that it's an autonomous body and does not bow into pressure from New Delhi.
Infact, the RBI subtext tries to debunk couple of myths which is very important. People with expectations going forward from the RBI policy should take that onboard. The RBI statement makes it clear that high interest rates is not the cause of low growth but there are other factors responsible for it.
Secondly, the RBI looks miffed with the fact that New Delhi or the segments of government are constantly putting the ball in the RBI's court for managing growth. This time the RBI tossed it back to the government with pointers to manage fiscal and fuel prices on their front.